UK economy expands 0.6%

Headlines say UK economy expands 0.6% and all stock picks are a mix of 86% BUY, 4% HOLD and 10% SELL.

1. AVOID Sondrel

Top stock pick this week is AVOID Sondrel by Steve Moore in ShareProphets with a tip performance of 29%.

Sondrel is a UK founded and headquartered fabless semiconductor business providing turnkey services in the design and delivery of complex, high end 'application specific integrated circuits' (“ASICs”) and 'system on chips' (“SoCs”) for leading global technology brands.

Founded in 2002, Sondrel share price listed in 2022 at 58p, hit an all-time high of 67p in 2023 and is today at 2p.

On 12 August it announced ‘Result of GM, Cancellation and Re-registration’ in this RNS. Since then shares lost 30% value from 2.6p to 1.80p as this is written.

In his article Moore is critical of the matched bargain facilities put in place on the day of cancellation.

In Stockomendation Steve Moore is the only analyst with AVOID and there are no active fund manager short positions.

2. BUY Entain

Second top performing stock pick this week is BUY Entain by Shore Capital with a tip performance of 7%.

Entain is an international sports betting and gambling company. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. It owns Coral, Ladbrokes, PartyPoker and Sportingbet brands. The company was incorporated in Luxembourg in 2004 as Gaming VC Holdings.

Entain share price listed on LSE in 2004 at 450p, rose to an all-time high of 2,156p in 2021 and is today at 602p.

In the news this week it released this RNS announcing Driector/PDMR Shareholding share purchases by Eminence Capital where Entain Director Ricky Sandler is the CEO. The transactions involved the acquisition of over 3.5 million shares at an average price of 580p totalling around £3m in value, significantly increasing Eminence Capital’s stake in the company.

In Stockomendation two out of four analyusts say BUY they are Shore Capital and Deutsche Bank and two are neutral being JP Morgan and UBS. There are four active short positions open, view those here.

3. ADD Bellway

Third top stock pick this week is ADD Bellway by Peel Hunt with a tip performance of 6%.

Bellway plc is a residential property developer and housebuilder based in Newcastle upon Tyne, England. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Founded in 1946, Bellway share price listed at 109p in 1988, rose to an all-time high of 4,297p in 2020 and is today at 2,993p.

In the news this week as it ditched plans to buy smaller housebuilder Crest Nicholson for around £720m in shares in this RNS on 13 August, shares rose 7% in a day.

In Stockomendation four analysts with four different ratings, they are: UBS with BUY; Pell Hunt with ADD; JP Morgan is NEUTRAL and RBS Capital says OUTPERFORM. There is one open fund manager short position by Marshall Wace, view that here.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 15th August 2024.